NEBRASKA'S
SHINING SHRINE If you live in the state of Nebraska, every time you turn on a light switch, you can remind yourself that you live in a socialist state. For those of you who have forgotten, socialism is a system where the government owns all property. That doesn’t apply to all areas of the state of Nebraska; but in one area that effects every one of us, Nebraska clearly practices socialism. All electricity in Nebraska is owned and operated by the State. It may have made sense as a way to provide electricity to rural areas when George Norris set up our socialist government monopoly, but the reality of today’s world offers no rational reason to continue state-run power companies. Nationally, the heavily regulated power companies are best described as fascist. They are owned by private companies, but the government’s heavy regulation has allowed for the creation of monopolies where there is no competition. There is widespread interest in Washington to deregulate electricity. This would result in ending monopolies, creating competition which would make many new companies spring up in the private sector and create jobs and wealth for many. At the same time prices would fall, service and quality would increase. It is estimated that deregulation would save consumers anywhere from twenty to sixty billion dollars every year. In a recent study, prominent scholars Robert Crandall and Jerry Ellig did a comprehensive study of five deregulated industries having similar attributes to electricity. They studied natural gas, telecommunications, airlines, trucking and railroads. The study found that in the first two years of regulation, prices fell anywhere from 4-15 percent. After 10 years, prices were at least 25% lower and sometimes were close to 50% less. Prices were lowest where consumers had the most choices. At the same time, safety and reliability of service either stayed the same or improved. Take a look at the airline industry. In the 20 years since deregulation, the number of people flying has tripled. The number of airlines increased from 39 to 95; and when adjusted for inflation, airline tickets are 37% less than before deregulation. Sure, there were some rough spots for some individuals, but overall deregulation in all these industries led to lower costs to the consumers and economic growth for the industries without sacrificing quality or safety. This is an election year in Nebraska. We will hear a lot, especially from Republican politicians, about reducing the size of government, lowering taxes, and lessening regulations. They will praise the free market. If you want to test their sincerity, ask them if they support Nebraska’s Socialist Shrine. I imagine you will hear a bunch of double-talk and untrue excuses from most of them in order to defend continuation of state-run electrical service. I wasn’t present, so I won’t name names to protect the innocent; but I was told that at a recent joint appearance of several candidates from both parties running for governor, all bowed to the shrine of socialism and vowed to fight attempts to deregulate electricity. It is time the people of this state and the nation remember the meaning of the statement Ronald Reagan made to Mr. Gorbachev at the Berlin Wall in 1987: "Mr. Gorbachev, tear down this wall." It is time to figuratively tear down Nebraska’s Shining Socialist Shrine. Privatization and deregulation will give lower costs, provide better service, and put more money in the private sector. |
